Specified service or trade businesses in the field of brokerage services have been narrowly defined to include only services relating to the sale of securities for a commission or fee. This opens the door for real estate agents and brokers along with insurance agents and brokers to benefit from the QBI deduction.

What are Section 162 trade or businesses?

Trade Or Business Expenses. rentals or other payments required to be made as a condition to the continued use or possession, for purposes of the trade or business, of property to which the taxpayer has not taken or is not taking title or in which he has no equity.

What qualifies as a specified trade or business?

An specified service trade or business (SSTB) is a trade or business involving the performance of services in the fields of health, law, accounting, actuarial science, performing arts, consulting, athletics, financial services, investing and investment management, trading, dealing in certain assets or any trade or …

What are the specified trade or businesses?

What is considered a specified service trade or business?

An SSTB is a trade or business involving the performance of services in the fields of health, law, accounting, actuarial science, performing arts, consulting, athletics, financial services, investing and investment management, trading or dealing in certain assets, or any trade or business where the principal asset is …

When does a trade or business become a SStB?

If a trade or business has 50 percent or more common ownership with an SSTB, to the extent that the trade or business provides property or services to the commonly-owned SSTB, the portion of the property or services provided to the SSTB will be treated as an SSTB (meaning the income will be treated as income from an SSTB).

Which is excluded from being a specified service trade ( SStB )?

Those industries that are specifically excluded from being deemed a Specified Service Trade or Business (SSTB) include: bankers. If you own, passively or otherwise, a business in any of the above industries you clearly are organized and paid your Washington lobbyists well. You are excused from reading further.

What does SStB stand for on a tax return?

The SSTB (specified service trade or business) designation reduces or eliminates the 20% Qualified Business Income (QBI) deduction at higher income levels.

What makes a business a specified service trade or business?

What Qualifies as an SSTB? The Internal Revenue Service (IRS) has a rather precise definition of SSTB. It includes “any trade or business where the principal asset is the reputation or skill of one or more of its employees or owners.”